[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7062 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7062
To amend titles 23 and 49, United States Code, to modify the rules
relating to eligible projects under the TIFIA program and the railroad
rehabilitation and financing program, to establish a transit-oriented
development financing program for projects of a certain size, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 14, 2026
Ms. Friedman (for herself and Mr. Lawler) introduced the following
bill; which was referred to the Committee on Transportation and
Infrastructure
_______________________________________________________________________
A BILL
To amend titles 23 and 49, United States Code, to modify the rules
relating to eligible projects under the TIFIA program and the railroad
rehabilitation and financing program, to establish a transit-oriented
development financing program for projects of a certain size, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Build Housing, Unlock Benefits and
Services Act'' or the ``Build HUBS Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the United States is facing a housing availability and
affordability crisis, marked by an inability of many citizens
to find homes in their desired communities at a price
affordable to them;
(2) transit-oriented development benefits communities,
transit agencies, and the people of the United States by
improving access to transit, jobs, and services, spurring
revitalization of neighborhoods and economic development, and
boosting transit ridership;
(3) the transportation infrastructure finance and
innovation program under chapter 6 of title 23, United States
Code (referred to in this section as the ``TIFIA program''),
and the railroad rehabilitation and improvement financing
program under chapter 224 of title 49, United States Code
(referred to in this section as the ``RRIF program''), can help
respond to the urgent need for additional housing by financing
transit-oriented development projects with mixed use or housing
components and have already been authorized to do so under the
FAST Act (Public Law 114-94; 129 Stat. 1312);
(4) if made more efficient, the transit-oriented
development provisions of the TIFIA program and the RRIF
program would offer attractive financing strategies that could
be used to forge public-private partnerships to deliver
accelerated housing production and improved economic
development and community vitality near transit nodes
nationwide;
(5) improving the information available about the
application process, shortening the underwriting timeline,
improving internal deliberation processes and government
efficiency, and executing the adjustments required to make
transit-oriented development projects easier to finance through
the program would benefit communities across the country,
especially in smaller communities with less robust development
environments; and
(6) while significant administrative reforms have improved
the programs, the Department of Transportation has been limited
in its ability to facilitate such development under the
constraints of the current law governing the TIFIA program and
the RRIF program.
SEC. 3. EXTENSION OF AND IMPROVEMENTS TO THE TIFIA PROGRAM.
(a) Extension.--Section 11101(a)(2) of the Infrastructure
Investment and Jobs Act (Public Law 117-58; 135 Stat. 443) is amended
by striking ``fiscal years 2022 through 2026'' and inserting ``fiscal
years 2027 through 2031''.
(b) Definitions.--Section 601(a) of title 23, United States Code,
is amended--
(1) in the matter preceding paragraph (1), by inserting
``and section 612'' after ``609'';
(2) by redesignating paragraphs (1) through (22) as
paragraphs (2), (3), (4), (6), (7), (8), (9), (10), (11), (12),
(13), (14), (15), (16), (17), (18), (19), (20), (21), (22),
(23), and (24), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Attainable housing project.--The term `attainable
housing project' means a transit-oriented development project--
``(A) that serves households with an income that is
not more than 120 percent of the area median income;
and
``(B) in which the majority of the housing units in
the project are affordable to households with an income
that is not more than 80 percent of the area median
income.'';
(4) by inserting after paragraph (4) (as so redesignated)
the following:
``(5) Investment-creditworthiness assessment alternative.--
The term `investment-creditworthiness assessment alternative'
means, with respect to project obligations for a transit-
oriented development project, a sufficient demonstration of
fiscal soundness and low risk of credit default that is not an
investment-grade rating, such as--
``(A) a joint liability agreement or equivalent
between the project lead and a State or unit of local
government with a sufficient credit rating;
``(B) an alternative rating sufficient to account
for the risk assumed by the Department of
Transportation for a project in which the Federal
credit instrument is $150,000,000 or less, as
determined by the Secretary; or
``(C) a certification that a project is deemed
creditworthy by an approved originator-servicer under
section 612.'';
(5) in paragraph (12) (as so redesignated), in subparagraph
(D)(ii)--
(A) by striking ``investment grade rating'' and
inserting ``investment-grade rating''; and
(B) by inserting ``or an investment-
creditworthiness assessment alternative'' after
``rating agency'';
(6) in paragraph (14) (as so redesignated), by striking
subparagraph (E) and inserting the following:
``(E) a transit-oriented development project;'';
and
(7) by adding at the end the following:
``(25) Transit-oriented development project.--The term
`transit-oriented development project' means a project located
within \1/2\ mile walking distance of a fixed guideway transit
facility, bus rapid transit facility, passenger rail station,
or multimodal facility, including a transportation, public
utility, or capital project described in section 5302(4)(G)(vi)
of title 49, and related infrastructure--
``(A) that consists entirely of, or includes,
residential, commercial, public infrastructure, or
mixed-used development or other related infrastructure,
including public or community space;
``(B) that incorporates private investment; and
``(C) for which the project sponsor demonstrates
the ability to generate new revenue for the relevant
station, facility, or service by increasing ridership,
increasing tenant lease payments, or carrying out other
activities that generate revenue exceeding costs.''.
(c) Determination of Eligibility and Project Selection.--Section
602 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (iii)--
(aa) by striking
``investment grade rating'' and
inserting ``investment-grade
rating''; and
(bb) by inserting ``or an
investment-creditworthiness
assessment alternative'' after
``credit instrument''; and
(II) in clause (iv), by inserting
``, or an investment-creditworthiness
assessment alternative'' after
``sufficient''; and
(ii) in subparagraph (B)--
(I) by striking ``investment grade
rating'' and inserting ``investment-
grade rating''; and
(II) by inserting ``, or an
investment-creditworthiness assessment
alternative'' after ``sufficient'';
(B) in paragraph (3)--
(i) by striking ``A project'' and inserting
the following:
``(A) In general.--Except as provided in
subparagraph (B), a project''; and
(ii) by adding at the end the following:
``(B) Transit-oriented development projects.--
``(i) Compatibility with planning.--In the
case of a transit-oriented development project,
the project sponsor shall be required--
``(I) to provide evidence of a
significant nexus with a project
included in the transportation
improvement program developed by the
applicable metropolitan planning
organization under section 134(j) and
the statewide transportation
improvement program developed by the
applicable State under section 135(g);
or
``(II) to demonstrate compatibility
with the long-range transportation plan
developed by the applicable
metropolitan planning organization
under section 134(i).
``(ii) Coordination.--In the case of a
transit-oriented development project that is
located within a metropolitan planning area,
the project sponsor shall coordinate with the
applicable metropolitan planning organization,
including by providing timely notification to
the metropolitan planning organization during
the planning and entitlement process, and by
sharing information on project details,
transportation impacts, and mitigation
measures.'';
(C) in paragraph (5)(B)(ii), by striking ``project
described in section 601(a)(12)(E)'' and inserting
``transit-oriented development project''; and
(D) by adding at the end the following:
``(12) Requirement for attainable housing projects.--In the
case of an attainable housing project, not less than 75 percent
of the total financial assistance provided for the project
under the TIFIA program shall be used for residential
components of the project.'';
(2) in subsection (b)(3), in the matter preceding
subparagraph (A), by striking ``The Secretary'' and inserting
``Except in a case in which a project intends to use an
investment-creditworthiness assessment alternative, the
Secretary'';
(3) in subsection (c)(2)--
(A) by striking ``No funding'' and inserting the
following:
``(A) In general.--No funding''; and
(B) by adding at the end the following:
``(B) Transit-oriented development.--
``(i) Pre-award acquisition exemption.--The
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) shall not apply to land
acquisition activities prior to an application
for assistance under the TIFIA program with
respect to a transit-oriented development
project, except for components of the project
located within the geographic boundaries of the
parcel of land acquired that will be owned, in
full or in part, by a public entity for the
majority of the loan term.
``(ii) Categorical exclusions.--
``(I) In general.--A transit-
oriented development project that
involves an activity described in
subclause (II) shall be categorically
excluded from the requirements of the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
``(II) Activities described.--An
activity referred to in subclause (I)
is any of the following:
``(aa) Rehabilitation or
conversion of an existing
office building to residential
or mixed use within
substantially the same
footprint.
``(bb) Reconstruction or
construction of a new
commercial building primarily
using land disturbed for
transportation use as described
in section 771.118(c)(9) of
title 23, Code of Federal
Regulations (or successor
regulations), or disturbed land
adjacent to land disturbed for
transportation use.'';
(4) in subsection (d)(1)--
(A) by striking ``and to the maximum extent
practicable''; and
(B) by striking ``, to the maximum extent
practicable,'';
(5) in subsection (e), by striking ``section 601(a)(2)(A)''
and inserting ``section 601(a)(3)(A)''; and
(6) by adding at the end the following:
``(f) Other Requirements.--Transit-oriented development projects
and attainable housing projects assisted under the TIFIA program, shall
be subject to the standards of section 5333(a) of title 49, U.S.
Code.''.
(d) Secured Loans.--Section 603 of title 23, United States Code, is
amended--
(1) in subsection (a)(3), by inserting ``or an investment-
creditworthiness assessment alternative, as applicable'' after
``602(b)(3)(B)''; and
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``subparagraph
(B)'' and inserting ``subparagraphs (B)
and (C)''; and
(II) by striking ``investment grade
rating'' and inserting ``investment-
grade rating or an investment-
creditworthiness assessment
alternative''; and
(ii) by adding at the end the following:
``(C) Transit-oriented development projects.--The
amount of a secured loan under this section for a
transit-oriented development project that contains a
significant general housing or attainable housing
component (as determined by the Secretary) or involves
a partnership with a transit agency, State, local
government partner, or nonprofit financing entity shall
not exceed 75 percent of the reasonably anticipated
eligible project costs.'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking
``subparagraphs (B) and (C)'' and inserting
``subparagraphs (B), (C), and (D); and
(ii) by adding at the end the following:
``(D) Attainable housing projects.--The interest
rate of a loan offered to an attainable housing project
under the TIFIA program shall be at \1/2\ of the
Treasury Rate in effect on the date of execution of the
loan agreement.''; and
(C) in paragraph (7)--
(i) by striking ``The Secretary'' and
inserting the following:
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Disclosure of fees.--The Secretary shall
develop and make publicly available a straightforward,
scalable, and reasonable fee structure with respect to
fees that may apply under this section.
``(C) Guidance on project requirements.--The
Secretary shall develop and make publicly available
guidance on eligibility requirements for transit-
oriented development projects, including guidance
relating to--
``(i) minimum debt service coverage ratios
by project type;
``(ii) maximum loan-to-cost and loan-to-